Published on 5/28/2014 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices another $6 million leveraged CMS curve, S&P 500 notes
By Susanna Moon
Chicago, May 28 - Morgan Stanley added another $10 million to its offering of fixed-to-floating leveraged CMS curve and S&P 500 index-linked notes due May 30, 2034, according to a 424B2 filing with the Securities and Exchange Commission.
This brings the total deal size to $23 million. The issuer priced $7 million of the notes on May 13 and another $7 million on May 22.
The coupon will be fixed at 10% for the first three years. After that, it will accrue interest at 4 times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate for each day that the index closes at or above the 50% barrier level, up to a maximum coupon of 10%. Interest will be payable monthly and cannot be less than zero.
If the index finishes at or above the 50% barrier level, the payout at maturity will be par. Otherwise, investors will be fully exposes to any losses.
Morgan Stanley & Co. LLC is the agent. Morgan Stanley Wealth Management is the dealer.
Issuer: | Morgan Stanley
|
Issue: | Leveraged CMS curve and S&P 500 index-linked notes
|
Underlyings: | 30-year CMS rate, two-year CMS rate, S&P 500 index
|
Amount: | $23 million, upsized from $7 million
|
Maturity: | May 30, 2034
|
Coupon: | 10% initially; beginning May 30, 2017, 4 times spread of 30-year CMS rate over two-year CMS rate for each day that index closes at or above barrier level, up to a cap of 10%; payable monthly
|
Price: | Variable
|
Payout at maturity: | If index finishes at or above barrier level, par; otherwise, full exposure to any losses
|
Initial level: | Closing level on May 27
|
Barrier level: | 50% of initial index level
|
Pricing dates: | May 13 for $10 million, May 22 for $7 million, May 27 for $6 million
|
Settlement date: | May 30
|
Agent: | Morgan Stanley & Co. LLC
|
Dealer: | Morgan Stanley Wealth Management
|
Fees: | 3.5%
|
Cusip: | 61760QEG5
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.